What project owners need to know.
India levies basic customs duty plus an infrastructure cess on imported solar cells and modules, but the upstream inputs — polysilicon, ingots and wafers — have historically entered with little or no duty, and goods used to make silicon wafers carried a customs exemption until 31 March 2026. Domestic manufacturers have asked for a safeguard duty on those upstream imports; check the current CBIC tariff for today's rate.
Duty today: cells and modules
India introduced basic customs duty (BCD) of 25 percent on imported solar cells and 40 percent on modules from 1 April 2022, to support domestic manufacturing. Budget 2025-26 restructured the levy from 2 February 2025: BCD on both was cut to 20 percent and an Agriculture Infrastructure and Development Cess (AIDC) was added — reported as 7.5 percent on cells and 20 percent on modules — so the overall protection stayed broadly similar.
Budget 2026-27, as reported by SolarQuarter, made its solar-specific change elsewhere in the chain, removing BCD on sodium antimonate used in solar glass. Trade reports differ slightly on effective rates, so the exact figures should be taken from the CBIC notification rather than press summaries.
- Cells: 20% BCD plus AIDC (reported 7.5%)
- Modules: 20% BCD plus AIDC (reported 20%)
- Rates and cess: confirm against the current CBIC notification
Duty upstream: polysilicon, ingots and wafers
The upstream position is less settled in public sources. Budget 2024-25 extended customs exemptions on goods used to manufacture silicon wafers until 31 March 2026, pv magazine reported. Coverage of Budget 2026-27 noted that certain silicon-related exemptions were due to lapse in April 2026, but we could not find an official source that states the rate applying to polysilicon (HS 2804 61) or doped ingots and wafers (HS 3818) after that date.
We therefore do not quote an upstream rate here. Anyone importing polysilicon, ingots or wafers should read the current Customs Tariff and the relevant exemption notification, or ask a customs broker, rather than rely on a summary.
Why the gap matters
Duty on cells and modules with little or no duty upstream protects the assembly stages while leaving ingot and wafer makers to compete directly with large, established exporters. That matters more as policy moves upstream: ALMM List-II for cells applies from 1 June 2026, and MNRE's March 2026 amendment brings ingots and wafers under ALMM List-III from 1 June 2028.
Under List-III, the first wafer list is to be issued only once at least three independent manufacturers with combined capacity of 15 GW a year are enlisted, and wafer capacity must be matched by ingot capacity. Domestic demand will therefore be created by the list, but the economics of building the plants are shaped by trade policy in the meantime.
What manufacturers are asking for
In March 2025 the Indian Solar Manufacturers Association asked the government for a safeguard duty on imports of polysilicon, ingots and wafers, PTI reported via Outlook Business. A safeguard duty is a temporary measure against a surge of imports that harms a domestic industry, investigated by DGTR; it is different from an anti-dumping duty, which targets prices below normal value from specific countries.
We found no public record of a DGTR safeguard or anti-dumping investigation on polysilicon or wafers as of this writing. For the existing trade-remedy picture on cells, see our guide on anti-dumping duty on solar cells.
- Safeguard duty: against an import surge, not country-specific
- Anti-dumping duty: against below-normal-value pricing from named countries
- Both are investigated by DGTR and notified by the Ministry of Finance
What it means for buyers and suppliers
For module and cell makers, the current structure means imported wafers remain a cost and supply question rather than a duty question, until List-III applies to their projects. For ingot and wafer projects under construction, policy signals — duty, ALMM timing and any polysilicon incentive — will shape how quickly domestic output becomes competitive.
Upstream suppliers of quartz crucibles, high-purity quartz sand, graphite hot-zone parts and argon follow the same curve: their Indian demand grows as ingot lines start running, whatever the duty on finished wafers.
How JRST supports this requirement
JRST works upstream of the cell, on the quartz-to-ingot link: high-purity quartz sand processing, crucible supply coordination and Maharashtra's first silicon-ingot line in Nagpur. We help project teams plan upstream supply alongside equipment. This guide summarises public policy and reporting as of the date shown. Duty rates and exemptions change through budgets and notifications; confirm against the current CBIC tariff and official notices before making a procurement or investment decision.
Discuss your requirement
Mohammed Saif Zaveri connects JRST's industrial content to execution conversations.
As Co-Founder and designated partner of JRST Technology LLP, Mohammed Saif Zaveri works across industrial growth, strategic partnerships, client conversations, equipment strategy, and project pathways for silicon, solar, semiconductor, and advanced-manufacturing opportunities.
This knowledge page is part of JRST's public industrial knowledge base, designed to help buyers move from search terms and early research toward a structured technical-commercial discussion.
View Mohammed Saif Zaveri's profileConnect on LinkedInFrequently asked questions
Is there import duty on solar wafers in India?
Goods used to make silicon wafers carried a customs exemption until 31 March 2026. The rate applying after that date should be checked in the current CBIC Customs Tariff; we could not confirm it from an official source.
What is the customs duty on solar cells and modules?
Since Budget 2025-26, 20 percent basic customs duty plus an Agriculture Infrastructure and Development Cess, reported as 7.5 percent on cells and 20 percent on modules.
Does ALMM List-III change customs duty?
No. ALMM List-III, effective 1 June 2028, is a procurement and eligibility framework for ingots and wafers. It creates domestic demand but does not set customs rates.
What is a safeguard duty?
A temporary duty against a surge of imports that seriously injures a domestic industry, recommended after a DGTR investigation. Indian solar manufacturers asked for one on polysilicon, ingots and wafers in March 2025.
Who sets customs duty in India?
The Ministry of Finance, through the Union Budget and CBIC notifications. Trade-remedy duties follow DGTR recommendations.
Primary sources and further reading
Last reviewed 2026-10-20. Technical scope, policy eligibility, availability, and commercial terms should be independently confirmed for each project.